Namibia has earmarked more than N$17 billion for the development of the Baynes hydropower project on the Kunene River, which will form the centrepiece of the government’s plan to expand electricity generation capacity and reduce reliance on imports.

The allocation, contained in the Ministry of Industries, Mines and Energy’s 2025/26–2029/30 strategic plan, provides for a development budget of N$17.01 billion for the Baynes project over the five years, positioning it as the single largest energy infrastructure investment in the plan.

Baynes is expected to anchor Namibia’s long-term generation strategy as the country works to increase installed capacity from 734 megawatts to 1,153 megawatts by 2030.

The project, located on the Kunene River along the Namibia–Angola border, is designed to deliver stable baseload power and reduce reliance on electricity imports, which currently account for a significant share of national consumption.

The hydropower development sits within a broader national push to strengthen energy security and support industrial growth.

Generation capacity

Rising demand from mining, oil and gas, and green hydrogen projects is expected to place increasing pressure on the grid, making new generation capacity a strategic priority.

Beyond generation, the plan emphasises expanding access to electricity. The government has allocated more than N$6.4 billion over the five years for electrification programmes targeting rural and peri-urban areas, as well as schools and health facilities. The objective is to increase national electricity access from 59.3% to 70% by 2030 through a phased rollout of new connections.

The rollout is structured to deliver incremental gains each year, combining grid expansion with decentralised solutions. Off-grid solar technologies, including household systems, water pumps and solar water heaters, are expected to complement traditional infrastructure, particularly in sparsely populated areas where grid extension is not economically viable. The plan targets deploying approximately 300 such solar solutions annually to expand access and reduce reliance on conventional fuels.

Urbanisation is also shaping the energy strategy. Rapid growth in peri-urban areas and informal settlements is increasing demand for reliable electricity, requiring targeted investment to upgrade distribution networks and expand access in densely populated zones.

The government is also exploring long-term diversification of the energy mix. The plan allocates N$40 million toward nuclear power development, focused on establishing regulatory frameworks and governance systems rather than immediate generation.

Affordability remains a central concern. A N$2.5 billion provision for energy price equalisation has been included to address over- and under-recoveries in the pricing system, helping stabilise tariffs while maintaining the sector's financial sustainability.

Additional investments are planned for transmission infrastructure and national energy networks to ensure that increased generation capacity can be effectively distributed.

The strategy also includes developing supporting infrastructure, such as fuel integrity and testing laboratories, to strengthen oversight and market regulation in the energy sector.

The plan, however, acknowledges several risks that could affect implementation.

These include budget constraints, shortages of specialised skills, infrastructure gaps, and broader governance challenges, all of which could slow progress if left unaddressed.

Energy security

Industries, mines and energy Minister Modestus Amutse said the strategy is intended to reposition the ministry as a central driver of industrialisation, anchored on energy security, value addition and local participation.

“The plan encapsulates our renewed mandate, vision and mission, articulates strategies and sets performance standards on how to achieve our goals," Amutse said, adding that deliberate efforts were put to calibrate strategic goals to the national development agenda.

Amutse said the plan, which serves as a living tool, will drive results, foster innovation, and deliver impact.

“The pivotal focus of our strategic plan is to nurture local content and build local capacity in the mineral value addition, mining and green industries," he said.

According to Amutse, the plan seeks to empower local businesses and individual citizens, equipping them to improve the social and economic well-being of our people.

Executive director in the ministry, Moses Pakote, said the plan was developed through broad stakeholder consultation and is intended to guide coordinated implementation across government and industry.